Deutsche Bank initiates coverage of Trainline at 'buy'

The bank said Trainline's brief history as a listed company has been almost entirely overwhelmed by the Covid-19 pandemic.

"A 90% overnight decline in passenger numbers has truly tested its business model," DB said. "And the resulting shift towards working from home provides a structural headwind for long-term passenger numbers, at least over the next 12 months."

However, Deutsche said the worst is now behind us and it expects a material recovery over the next 18 months.

"This is partly backed by financial imperative - the government is incentivised to encourage a return to rail (as in France), having only recently taken on full ownership of losses.

"It has also made commitments to reduced carbon emissions, which should drive policy shifts to encourage a migration in passenger volumes to rail."

At 0930 BST, the shares were up 3% at 341.20p.